Mariam Abeeb
The Minister of Solid Minerals, Oladele Alake, has hailed the $1n (N1.6tn) new iron ore to the steel project planned for Kogi State as a breakthrough in the Federal Government’s push for local value addition in the sector.
The project, a collaboration between Nigeria’s Chart and Capstone Integrated Limited and China’s Sinomach-He, marks a pivotal step in the Federal Government’s drive to prioritize local value addition over raw mineral exports.
Special Adviser to the Minister, Kehinde Bamigbetan, disclosed this in a statement on Sunday.
Speaking at a meeting in Beijing during President Bola Tinubu’s recent visit to China, Alake praised the project as a breakthrough in the government’s efforts to revamp the sector.
The statement partly read, “He said the Federal Government has reversed the pit to port policy under which mining companies exported raw minerals to extraction with local value addition which is the best guarantee of jobs for the youths, skills transfer and better balance of trade between the country and her trading partners.”
The new policy requires that applicants for mining licenses include plans for processing raw minerals locally, a move Alake said will enhance Nigeria’s trade balance, particularly with China.
“The trade balance between Nigeria and China is over one billion dollars in favour of China because the minerals imported from Nigeria are essentially in raw forms,” Alake noted.
“Once Nigeria starts to export finished or semi-finished value-added mineral products, our balance of trade will be more favourable, and our foreign exchange earnings will improve.
“With aggressive local value addition and the revenue from it, the prospects of reducing our debt burden in the nearest future is possible,” he said.”
The CEO of Chart and Capstone Integrated Limited, Chief Abel Edijala, praised the Federal Government’s streamlined license application process.
“We applied for an exploration licence for our iron ore mining project at the Mining Cadastral Office, and we did not need to see anybody before our application was approved within a reasonable period.
“This shows that the system you have put in place is fair and works for all. I must commend you for this,” Edijala said.
Commending the efficiency and transparency of the process, he further explained that the project aims to integrate iron ore mining directly with steel manufacturing, ultimately supporting Nigeria’s industrialisation needs.
Edijala also highlighted the need for tax waivers and holidays during the project’s early stages to help navigate economic fluctuations and meet targets.
